The Finnish Fair Corporation | Annual Report 2023
Year 2023 was busy for the Finnish Fair Corporation
Demand for live events continued to be strong. Events, services and strategy were again developed in a long-term perspective.
International market studies predict strong global growth for the trade fair industry. Signs of this were already evident in the Expo Centre’s results for the reporting year.
Growth and business through impactful encounters
The year 2023 was busy at the Helsinki Expo and Convention Centre. For the first time since the pandemic, the programme was fully implemented. We were once again able to develop our events, services, and strategy over the long term.
The central theme of our actions crystallizes into a strong growth strategy. We aim to create the most impactful events, develop the encounter media, build sustainable infrastructure for the future, and, as a pioneer, enhance the expertise within the industry. We seek growth through new customers, events, and business models, as well as by providing even better service to our customers as a provider of comprehensive solutions.
We want to pursue growth sustainably. That’s why we have made sustainability a central part of the Helsinki Expo and Convention Centre’s strategy. According to our strategy, for us sustainability is all about actions.
Sustainability work continues to be increasingly comprehensive across all three areas: taking responsibility for the environment, the economy, and people, based on data, facts, and actions. International market studies predict strong global growth for the fair and exhibition industry. Signs of this were already evident in the results of the Helsinki Expo and Convention Centre in the reporting year. Attendance at our events rebounded, and companies reported new sales records from their participations.
At the same time, we gained momentum for growth through a significant service overhaul: by renovating the entire restaurant selection at the Helsinki Expo and Convention Centre in collaboration with our new restaurant partner, NoHo Partners. We also launched new events and introduced a completely new facility and service concept, BÖLE Arena & Club.
Our renewed mission and vision fuel our growth strategy.
Our mission is to foster growth through encounters. This means advancing our customers’ business operations, providing inspiration to our visitors, and strengthening the business community. Our vision is to be the ultimate partner in encounters. We aim to become the leading exhibition and event organizer in the Nordics by offering impactful event experiences that make us the top choice for our customers in all encounters.
The concept of encounter media embodies the unique allure of events: the opportunity for genuine and impactful interaction with people who share similar interests. Trade fairs are the campfires of our time – The real social media.
I thank our competent staff as well as our customers and partners for a successful year. Sustainable growth is achieved through collaboration.
Anni Vepsäläinen, CEO
Report of the Board of Directors
General overview
The year 2023 was a busy one for The Finnish Fair Corporation Ltd. Demand for live events remained strong throughout 2023 despite an uncertain and rapidly changing operating environment.
After the pandemic years, the company developed a growth strategy until 2026. In line with the updated mission, the company aims to create growth through encounters. The vision is to be a superior partner in encounters, striving to be the number one leading trade fair and event organiser in the Nordic countries by providing impressive event experiences.
There was a strong focus on customer experience. In Taloustutkimus’ 2023 survey of working life decision makers (TEP-survey), Helsinki Expo and Convention Centre was among the leaders in its sector and indisputable number one in the sector in terms of functionality of the fair and exhibition spaces, service range, reliability and operational safety.
The NPS for customer relationships was an excellent 46 (45) in the year under review.
New events included the professional event Turvallisuus for the fire and rescue sector and a new type of health festival, the Radical Health Festival Helsinki, which focuses on digitalization and innovation in healthcare.
The most substantial service reform of the year was the renewal of Helsinki Expo and Convention Centre’s entire restaurant selection in cooperation with the new restaurant partner NoHo Partners starting from July 1 2023.
International congresses are very important for Helsinki and Finland. In 2023, Helsinki Expo and Convention Centre hosted a total of 8 (4) international congresses, with 15 500 (2 600) delegates and a revenue and employment impact of almost €30 M (€5M).
The year also saw the launch of the BÖLE Arena & Club facility and service concept, which can transform into a club or concert venue bringing together international artists and productions, restaurant services and audiences.
Sustainability is a key part of Helsinki Expo and Convention Centre’s strategy. During the year, strong progress was made in sustainability work. In line with our strategy, for us, sustainability is actions. Key sustainability themes with targets and indicators were defined, and the work will continue to be based on data, facts and actions in an even more comprehensive way in all three areas: taking responsibility for the environment, the economy and the people.
In 2023, the Finnish Fair Corporation Group organised a total of 33 (25) trade fairs. The number of exhibitors was 5 948 (4 612) and the exhibition space sold was 211 232 m2 (192 722 m2). In addition to its own events, Helsinki Expo and Convention Centre hosted 30 (27) guest events and 486 (476) meetings, congresses, parties, entertainment productions and special events. A total of 883 280 (597 624) visitors attended the Group’s events.
Helsinki Expo and Convention Centre renewed its SHORE Gold safety certification during the reporting year. The Finnish Fair Corporation Ltd and its subsidiary SVV Oy were awarded The Strongest in Finland certificate as an indication of positive financial indicators, a strong credit rating and good payment behaviour.
Sustainability became a priority area in the updated strategy of Helsinki Expo and Convention Centre. The strategy outlines that sustainability is first and foremost a matter of action.
Sustainability
Helsinki Expo and Convention Centre takes responsibility for the environment, people and economic sustainability. Sustainability work is reported in accordance with the ESG model, taking into account the UN Sustainable Development Goals.
Sustainability became a priority area in the updated strategy of Helsinki Expo and Convention Centre. The strategy outlines that sustainability is first and foremost a matter of action.
An extensive sustainability survey with key stakeholders was carried out and used to derive a Double Materiality Assessment in collaboration with Greenstep Oy. The analysis clarified three sustainability themes for Helsinki Expo and Convention Centre, for which targets and indicators were defined.
- Attractive and safe events that enable encounters. The objective is a reliable and ethically sustainable service; measured through revenue and employment impact, publicity received, NPS of events and renewal of SHORE certification.
- Commitment to sustainable practices. Aim for a small and reduced environmental impact, measured by recycling rate, carbon footprint and energy use. Long-term goal is to be carbon neutral by 2029.
- Healthy personnel and collaboration partners and a safe working environment. The objective is to have healthy and competent staff, measured by eNPS, staff turnover and number of training days.
As part of the sustainability work, the direct and indirect sources of emissions from operations were identified. On this basis, a comprehensive carbon footprint calculation was launched.
In the area of social responsibility, long-term cooperation was continued with UNICEF Finland, Live Vocational College and the Hurstinapu ry aid organization. In addition, cooperation was initiated with Spesia Vocational College in the prevention against food waste.
| Key figures | 2023 | 2022 |
| Revenue and employment impact M€ | 128 (2022) | 63 (2021) |
| NPS | 46 | 45 |
| Recycling rate % | 19 | 19 |
| Waste management CO2-emissions | –51 tonnes CO2e | -28 tonnes CO2e |
| Group CO2e, tonnes (Scope 1-2) | 2675 | 2567 |
| eNPS | 37 | 36 |
Personnel
The number of permanent staff employed at the end of 2023 was 163 (152). Additionally, an average of 6 trainees worked at the Finnish Fair Corporation in a variety of marketing and communications, customer service and IT positions. The employer reputation of the Finnish Fair Corporation has remained strong, and there are plenty of good candidates for new vacancies.
The Finnish Fair Corporation has an organisational model suited to the rapid resource fluctuations required by the project business, where, in addition to permanent staff, specialist and resource pools built up for different functions are used during peak periods.
Regular measurements of staff satisfaction continued, and staff satisfaction remained high. The Group’s employee satisfaction index (eNPS) was 37 (36).
Owners
On 31 December 2023 The Finnish Fair Corporation Ltd was owned by 196 shareholders, including numerous companies, the City of Helsinki and The Finnish Fair Foundation. The largest shareholder in The Finnish Fair Corporation Ltd continues to be the long-standing background entity The Finnish Fair Foundation, which holds 89% of the shares and thus exercises control over The Finnish Fair Corporation Ltd.
The number of shares is 44 278 and there is only one class of shares. If a share in the company is transferred to a new third-party owner, the transfer must be notified to the company’s Board of Directors without delay. The company has a primary right and the shareholders a secondary right to redeem the shares transferred to the new shareholder under the conditions specified in the articles of association.
The implementation of the growth strategy will continue. The events portfolio is strong but at the same time requires continuous development.
Economic development
Turnover and result
In 2023, the Finnish Fair Corporation Group consisted of The Finnish Fair Corporation Ltd and its wholly owned subsidiaries Expomark Oy and Suomen Videoviestintä SVV Oy.
The Group’s turnover in 2023 was EUR 51.3 million (EUR 46 million in 2022), a change of +11.4% from the previous year.
Of the subsidiaries, Expomark Oy had a turnover of EUR 1.2 million and an operating loss of EUR 317 thousand. Suomen Videoviestintä SVV Oy’s turnover increased to EUR 6.5 million and its operating profit was EUR 1.3 million.
Group operating expenses amounted to EUR 50.0 million (43.1), of which depreciation according to plan amounted to EUR 7.5 million (8.4).
Group operating profit was EUR 1.3 million (4.7). The operating result in relation to turnover was +2.6% (+10.1%).
Group profit before accounting transfers and taxes was EUR 1.6 million (4.6). Group profit for the period was EUR 1.9 million (5.0).
Financing
The Group’s operating cash flow was EUR +9.1 million (+13.6). Investment cash flow was EUR -3.2 million (-1.1).
Interest-bearing liabilities at the end of the financial period amounted to EUR 0 million (3.6). The balance sheet total amounted to EUR 93.7 million (94.3), with an equity ratio of 89.3% (86.8%).
The debt-to-equity ratio is 0% (4.63%). Long term debt was fully repaid during the financial year 2023.
Taxes
Group taxes amounted to EUR 0.3 million (0.4).
Investments
Group investments totalled EUR 3.2 million (1.1), or 6.3% (2.4%) of turnover. Investments in property replacement and maintenance amounted to EUR 1.7 million, IT and digital investments to EUR 0.6 million and investments in rental equipment to EUR 0.9 million.
Dividend policy
The Finnish Fair Corporation Group’s objective is to pay a dividend of 1/3 of its net profit, taking into account the company’s financial situation and strategy.
Outlook for 2024
The economic situation in Finland will have a negative impact on the purchasing behaviour of both business and consumer customers. However, there are significant differences between sectors. The effects of rising interest rates and inflation are expected to ease and the worst rise in event organisation costs is believed to be over.
Strikes due to the unstable labour market situation will pose challenges in event production, at least in the first half of the year.
The implementation of the growth strategy will continue. The programme in the Trade Fair business is strong in the even-numbered years. The Food Fair will be launched as a new trade fair event. Helsinki Expo and Convention Centre’s Events & Congresses business will focus in particular on the sale of international congresses and business events and on increasing the BÖLE Arena & Club business.
Investments will continue in the property, upgrading of the facilities available for rental to customers, AV technology and marketing and financial information systems.
Significant events after the end of the financial year
The Finnish Fair Corporation Ltd has not experienced any significant events since the end of the financial year.
Risks and uncertainties
Increased interest rates and inflation reduce the disposable income of visitor customers and may have a negative impact on the number of visitor customers. On the other hand, a short-term economic downturn may also reduce exhibitors’ investment in fairs and events. However, the events portfolio is reasonably strong and resilient to short-term changes, but at the same time requires continuous development to maintain its position in the media market.
The security expertise of Helsinki Expo and Convention Centre includes comprehensive security systems, trained staff, well-maintained premises, continuous surveillance, cyber risk preparedness, continuous security planning and close cooperation with authorities.
Personal and property risks are countered through systematic risk management. The financial impact of risks is covered by property, cyber and interruption insurance.
Staff
The Group employed an average of 162 (143) full-time employees during the financial year. Total wages and salaries amounted to EUR 13.2 million (10.5).
| Group business development 2019–2023 | 2023 | 2022 | 2021 | 2020 | 2019 |
| Turnover, 1000 EUR | 51 279 | 46 038 | 14 744 | 20 152 | 59 336 |
| Change in turnover, % | 11,4 | 212,2 | -26,9 | -66,0 | 5,2 |
| Operating result, 1000 EUR | 1 328 | 4 650 | -10 392 | -13 496 | 2 616 |
| % of turnover | 2,59 | 10,10 | -70,50 | -67,0 | 4,4 |
| Return on equity, % | 2,4 | 6,6 | -13,0 | -14,7 | 2,3 |
| Equity ratio, % | 89,3 | 86,8 | 87,5 | 87,8 | 85,2 |
| Personnel on average during financial year | 162 | 143 | 154 | 202 | 205 |
| Salary amount for the financial year, 1000 EUR | 13 220 | 10 545 | 7 057 | 8 936 | 14 447 |
| The Finnish Fair Corporation Ltd’s business development 2019–2023 | 2023 | 2022 | 2021 | 2020 | 2019 |
| Turnover, 1000 EUR | 47 269 | 40 714 | 13 953 | 19 605 | 55 405 |
| Change in turnover, % | 16,1 | 191,8 | -28,8 | -64,6 | 9,1 |
| Operating result, 1000 EUR | 295 | 2 381 | -9 240 | -11 874 | 893 |
| % of turnover | 0,62 | 5,85 | -66,2 | -60,6 | 1,6 |
| Return on equity, % | 0,6 | 3,0 | -11,7 | -13,1 | -1,1 |
| Equity ratio, % | 87,5 | 85,3 | 86,6 | 85,7 | 85,1 |
| Personnel on average during financial year | 130 | 112 | 124 | 172 | 172 |
| Salary amount for the financial year, 1000 EUR | 10 834 | 8 683 | 6 054 | 7 747 | 12 431 |
Administration
The Board of Directors consists of 5 members. Board members 31 December 2023 are:
Chairman
Timo Lappalainen, Chairman of the Board, MSc Tech
Vice Chairman:
Leena Niemistö, Board Professional, MD
Members:
Karri Kaitue, Board Professional
Sam Nieminen, Board Member, SGN Group Oy
Anu Nissinen, Board Professional
Members of the Board of Directors of The Finnish Fair Corporation Ltd received an attendance allowance of EUR 1,000 per meeting and EUR 1,000 per month in 2023. The Chairman of the Board was paid a monthly remuneration of EUR 2,000 and an attendance allowance of EUR 2,000 per meeting.
Executive Board
Anni Vepsäläinen, CEO
Mikko Horppu, Director, Exhibitions business unit
Kristina von Konow, Director | Events, Meetings and Conferences business unit (until November 7, 2023)
Marcus Bergström, Director, Events, Meetings and Conferences business unit (from February 26, 2024)
Lumia Ankkuri, Director. Marketing and Communications
Petteri Nissinen, CFO
Mika Vakkilainen, Director, Property and Production
Auditors
Principal auditor
PricewaterhouseCoopers Oy
Riitta Ulvinen
Proposal for distribution of the profit and free equity
Proposal of the Board of Directors for distribution of the profit and free equity of The Finnish Fair Corporation Ltd for the financial year 2023:
The distributable assets of The Finnish Fair Corporation Ltd on December 31, 2023 are EUR 75 541 802.26 of which EUR 2 580 568.26 is the profit of the financial year.
The Board of Directors proposes to the General Meeting, that a dividend of EUR 14 per share be distributed for the financial year ended on December 31, 2023. No dividend will be paid on the company’s own shares held on the record date for the dividend payment.
On the date of making the proposal for profit distribution, there are 44,278 shares eligible for dividend, so the total amount of the dividend would be EUR 619 892.
According to the proposal, the dividend would be paid to those shareholders who are registered in the company’s shareholder register maintained by the company on the record date for the dividend payment, which is April 30, 2024.
The company’s liquidity is good, and the proposed profit distribution, according to the Board’s view, does not jeopardize the company’s solvency.